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HomeMy WebLinkAbout061 - 05/16/2017 - AMENDING ARTICLE III OF CHAPTER 25 OF CITY CODE CONCERNING THE IMPOSITION, COLLECTION, AND ENFORCEME (2)ORDINANCE NO. 061, 2017 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING ARTICLE III OF CHAPTER 25 OF THE CODE OF THE CITY OF FORT COLLINS CONCERNING THE IMPOSITION, COLLECTION, AND ENFORCEMENT OF THE CITY'S SALES AND USE TAXES WHEREAS, the City of Fort Collins, as home rule municipality, is granted in Article XX, § 6.g. of the Colorado Constitution all powers necessary to levy and collect taxes for municipal purposes, subject to any limitations in the Colorado Constitution; and c WHEREAS, on November 16, 1967, the City Council, in the exercise of its home rule taxing powers, adopted Ordinance No. 058, 1967, to levy, collect and enforce beginning on January 1, 1968, a sales and use tax on the purchase price of tangible personal property sold at retail in the City and on certain taxable services provided in the City (the "Sales and Use Tax Code"); WHEREAS, the Sales and Use Tax Code is currently found in Article III of City Code Chapter 25 and it has been significantly amended many times since its adoption in 1967; and WHEREAS, since early 2016, City staff has worked with the Colorado Municipal League CML") on a statewide effort to update and make more consistent the definitions that municipalities around state use for the imposition and collection of their respective,sales and use taxes; and WHEREAS, in connection with this effort, City staff has also reviewed the other provisions of the Sales and Use Tax Code to update and revise these provisions as needed for clarification and consistency with the current practices and regulations that the Financial Officer and the City's Sales Tax Department follow in administering the Sales and Use Tax Code; and WHEREAS, this Ordinance.not only amends the definitions in the Sales and Use Tax Code generally consistent with CML's proposed definitions, but it also amends the City's administrative processes for the collection and enforcement of the City's sales and use taxes as proposed by City staff; and WHEREAS, the City Council hereby finds that amending the Sales and Use Tax Code as proposed in this Ordinance is in the City's and its taxpayers' best interests and necessary for the publics' health, safety and welfare. I NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. 1- Section 2. That Article III Division 1 of Chapter 25 of the Code of the City of Fort Collins is hereby amended to read as follows: ARTICLE III. - SALES AND USE TAX Division 1 General Provisions; Taxes Imposed Sec. 25-71. - Definitions. The following words, terms and phrases, as used in this Article, shall have the following meanings: Carrier access services shall mean the services furnished by a local exchange company to its J customers, which customers use those services to provide telecommunication services to their customers. Coin operated device shall mean any device operated by coins or currency or any substitute therefor. Collection costs shall mean all of the City's costs incurred to enforce the provisions of this Article, which shall include, without_ limitation, all costs of audit, assessment, hearings, execution, lien filings, distraint -actions, litigation, locksmith fees, auction costs, bank fees, prosecution costs and related attorney fees. Commercial packaging materials shall mean containers, labels and/or cases, that become part of the finished product to the purchaser, used by or sold to a person engaged in manufacturing, compounding, wholesaling,jobbing, retailing, packaging, distributing or bottling for sale, profit or use, and is not returnable to said person for reuse. Commercial packaging materials do not include commercial shipping materials. Commercial shipping materials shall mean materials that do not become part of the finished product to the purchaser and are used exclusively in the shipping process. Commercial shipping materials include, but are not limited to, containers, labels, pallets, banding material and fasteners, shipping cases, shrink wrap, bubble wrap and other forms of binding, padding or protection. Commercial shipping materials shall not include returnable kegs and similar large containers used to sell any beverage. Construction equipment shall mean any equipment, including mobile machinery and mobile equipment, that is used to erect, install, alter, demolish, repair, remodel or otherwise make improvements to any real property, building, structure or infrastructure. 2- Consumer shall mean any person in the City who uses stores, distributes or otherwise consumes in the City tangible personal property or taxable services purchased from sources inside or outside the City. Digital product shall mean an electronic product including, but not limited to: (I) "digital images," including, but not limited to, works that are generally recognized in the ordinary and usual sense as "photographs," "logos," "cartoons" or "drawings"; (2) "digital audio-visual works," meaning a series of related images that, when shown in succession, impart an impression of motion, together with accompanying sounds, if any; and (3) "digital audio works," meaning works that result from the fixation of a series of musical, spoken, or other sounds, including ringtones (for purposes of the definition of "digital audio works," "ringtones" means digitized sound files that are downloaded onto a device and that may be used to alert the customer with respect to a communication) and (4) "digital books," meaning works that are generally recognized in the ordinary and usual sense as "books". Distribution shall mean the act of distributing any article of tangible personal property for use or consumption, which may include, but not be limited'to, the distribution of advertising gifts, shoppers guides, catalogs, directories or other property given as prizes,premiums or for goodwill or in conjunction with the sales of other commodities or services. District court shall mean the Larimer County District Court in the Eighth Judicial District of the State of Colorado. Dwelling unit shall mean a building or any portion of a building designed for occupancy as a complete, independent living quarters for one (1) or more persons, having direct access from the outside of the building or through a common hall and having living, sleeping, kitchen and sanitary facilities for the exclusive use of the occupants. Engaged in business in the City shall mean performing or providing services or selling, leasing, renting, delivering or installing tangible'personal property for storage, use or consumption within the City. Engaged in business in the City includes, but is not limited to, any one (1) of the following activities by a person: 5) Makes more than one (1) delivery,into the taxing jurisdiction within a twelve- month period by any means other than a common carrier. Farm close-out sale shall mean full and final disposition of all tangible personal property previously used by a person in the operations that are being abandoned. 3- L Farm operations shall mean the agricultural,ranching and vitacultural production of any of the following products for profit, including,without limitation, a business that hires out to produce or harvest such products: (1) livestock; (2) milk; (3) honey; (4) poultry and eggs; (5) fruits, vegetables and grains; (6) wool and plant fibers; and (7) similar products produced in agricultural, ranching and vitacultural operations. However,farm operations shall not include the growing, cultivation or production of marijuana in any form or for any purpose. Financial Officer shall mean the Financial Officer of the City of Fort Collins or such other individual person designated by the Financial Officer. Food shall mean: food for domestic home consumption as defined in 7 U.S.C. § 2012(k) as amended, for purposes of the supplemental nutrition assistance program, or any successor program, as defined in 7 U.S.C. § 2012(t), as.amended;-except that food does not include prepared food or food for immediate consumption; carbonated water marketed in containers; chewing gum; seeds and plants to grow food; prepared salads and salad bars; packaged and unpackaged cold sandwiches; deli trays; and hot or cold beverages served in unsealed containers or cups that are vended by or through machines or non-coin-operated coin-collecting food and snack devices on behalf of a vendor. Gross sales shall mean the total amount' received in money, credit, property or other consideration valued in money for all sales, leases or rentals of tangible'personal property and for the purchase of taxable services. License shall mean a City of Fort Collins sales and use tax license issued under this Article. t Lodging services shall mean the furnishing of a room or other accommodations by any person to another person who for consideration uses, possesses or has the right to use or possess that room or accommodation in a hotel, motel, inn, bed and breakfast residence, apartment hotel, lodging house, motor hotel, guest house, guest ranch, trailer coach, mobile home, auto camp, trailer court or park, dwelling unit, or any similar establishment or accommodation, for a period of less than thirty (30) consecutive days under any lease, rental, concession, permit, right of access; license to use or other agreement. Mobile machinery and self-propelled construction equipment shall mean those vehicles, self- propelled or otherwise, that are not designed primarily for the transportation of persons or cargo over the public highways, and those motor vehicles that may have originally been designed for the transportation of persons or cargo over the public highways, but that have been redesigned or modified by the mounting thereon of special equipment or machinery, and that may be only incidentally operated or moved over the public highways. This definition includes but is not 4- limited to wheeled vehicles commonly used in the construction, maintenance and repair of roadways, the drilling of wells and the digging of ditches. Person shall mean an individual, firm, partnership, joint venture, corporation, limited liability company, other business entity, association, estate, trust, receiver, trustee, assignee, lessee or any person acting in a fiduciary or representative capacity, whether appointed by a court or otherwise, or any group or combination acting as a unit. Price or purchase price shall mean the aggregate value measured in currency paid'or delivered or promised to be paid or delivered in consummation of a sale, without any discount from the price on account of the cost of materials used, labor or service cost, but exclusive of any direct tax imposed by the federal government or by'this Article, or imposed as a payment in lieu of taxes and/or franchise fee in Code Chapter 26 and, in the case of all retail sales involving the exchange of property, also exclusive of the fair`market value of the property exchanged at the same time and place of the exchange, if: Price or purchase price includes: 5) Installation, delivery, wheeling and all other charges included in the purchase price and not separately stated. Price or•purchase price shall not include: C 2) The fair market value of property exchanged if such property is to be sold thereafter in the retailer's usual course of business. This is not limited to exchanges in Colorado. Out-of-state trade-ins are an allowable adjustment to the purchase price. J 3) Discounts from the original price if such discount and the corresponding decrease in sales tax due is actually passed on to the purchaser, and the seller is not reimbursed for the discount by the manufacturer or someone else. An anticipated discount to be allowed for payment on or before a given date is not an allowable adjustment to the purchase price in reporting gross sales. 5- Prosthetic devices shall mean any artificial limb, part, device or appliance for human use that replaces a body part or aids or replaces a bodily function; is designed, manufactured, altered or adjusted to fit a particular individual; and is prescribed by a licensed practitioner of the healing arts. Prosthetic devices include but are not limited to prescribed auditory, ophthalmic or ocular, cardiac, dental or orthopedic devices or appliances, oxygen concentrators, and related accessories. Purchase or sale shall mean the acquisition for any consideration by any person of tangible personal property or taxable services that are purchased, leased, rented, sold, used, stored, distributed or consumed, but excludes a bona fide gift of property or services. These terms include capital leases, installment and credit sales, and property and services acquired by any of the following: 1) Transfer, either conditionally or absolutely, of title or possession or both to tangible personal property or-taxable services; 4) Barter or exchange for other tangible personal property or services. The terms purchase and sale do not include the following: 2) The formation of a corporation by the owners of a business and the transfer of their business assets to the corporation in exchange for all of the corporation's outstanding stock, except qualifying shares, in proportion to the assets contributed; 10) The transfer of assets from a subsidiary corporation or corporations that are owned at least eighty (80) percent by the parent corporation to a parent corporation or to another subsidiary that is owned at least eighty (80) percent by the parent corporation, which transfer is solely in exchange for stock or securities of the parent corporation or the subsidiary which received the assets; or Retailer shall mean any person selling, leasing, renting, or granting a license to use tangible personal property or services at retail. Retailer shall include, but is not limited to, any: 2) Salesperson, representative, peddler or canvasser, who makes sales as a direct or indirect agent of or obtains such property or services sold from a dealer, distributor, supervisor or employer; and 6- Return shall mean any form prescribed by the Financial Officer for computing and reporting a tax liability under this Article. Sales tax shall mean the tax that is collected or required to be collected and remitted by a retailer on sales taxed under this Article. School shall mean a public or private school for students in kindergarten through twelfth grade or any portion of these school grades and shall not include preschools, trade schools and post- secondary schools. Software program shall mean a sequence of instructions that can be measured, interpreted and executed by an electronic device (e.g., a computer, tablet, smart phone) regardless of the means by which it is accessed or the medium of conveyance. Software program includes pre-written software program, which is a software program prepared for sale or license to multiple users, and not to the special order or specifications of a single customer. Pre-written software is commonly referred to as "canned," "off-the-shelf "mass produced" or "standardized." The generic term software," "software application," as well as "updates," "upgrades," "patches," "user exits," and any items that add or extend functionality to existing software programs shall be considered a software program. However, software program shall not include a custom software program, which is a software program prepared tp the special order or specifications of a single customer. It shall also not include modifying software, which means software that is created by someone other than the purchaser to alter or enhance pre-written software to create a custom program for the purchaser. However, the pre-written software that is so modified is still considered a software program. Software maintenance agreement means an agreement, typically with a software provider, that requires the purchaser of the software product to pay an additional fee for future products and/or services in order to be allowed to use the software product. Such future products and' services may include, without limitation (1) software upgrades, including code updates, version updates, code fix modifications, enhancements, and added or new functional capabilities loaded into existing software, and (2) technical support. Those software maintenance agreements that are not required to be purchased in order to use the software product and provide for only technical support shall not be considered a software maintenance agreement for purposes of this Article. However, those software maintenance agreements that are not required to be purchased for use of the software, but will provide code and version updates, shall be considered a software maintenance agreement for purposes of this Article. Sound system services shall mean the provision of broadcast or prerecorded audio programming to a building or portion thereof. Such term does not include installation of sound systems where the entire system becomes the property of the building owner or the sound system service is for presentation of live performances. Storage or storing shall mean any keeping or retention of, or exercise of dominion or control over, tangible personal property within the City. 7- Tangible personal property shall mean corporeal personal property that can be one or more of the following: seen, weighed, measured, felt or touched, stored, transported, or exchanged, or that is in any other manner perceptible to the senses. Tangible personal property shall also include, without limitation, digital products, software programs and software maintenance agreements. Tax deficiency shall mean the total amount of tax, penalties, interest, collection costs and other amounts owed under this Article that is not reported or not paid on or before the date that the filing of any return for that amount or payment of that amount is required under this Article. Taxable sales shall mean gross sales less,, any exemptions and deductions specified in this Article. Taxable services shall mean services subject to tax pursuant to this Article. Taxpayer shall mean .any person obligated to collect and/or pay tax under the terms of this Article. J Telecommunication service shall mean the service the object of which is the transmission of any two-way interactive electronic or electromagnetic communications, including, but not limited to, voice, image, data and any other information by the use of any means, including, but not limited to, wire, cable, fiber optical cable, microwave, radio wave, Voice over Internet Protocol (VoIP) or any combinations of such media, including any form of mobile two-way communication. Telecommunication service does not include separately stated non-transmission services which constitute computer processing applications used to act on the information to be transmitted. Television and entertainment services shall mean audio or visual content that can be transmitted electronically by any means, for which a charge is imposed. Total tax liability shall mean the total of all tax, penalties, interest, collection costs and any other amounts owed by a taxpayer under this Article and shall include, without limitation, sales tax collected in excess of such tax computed on total sales. Use shall mean the exercise for any length of time by any person within the City of any right, power or dominion over tangible personal property or taxable services when rented, leased or when purchased at retail from sources either within or without the City, from any person or vendor or used in the performance of a contract in the City whether such tangible personal property is owned or not owned by the taxpayer. Use also includes the withdrawal of items from inventory for consumption. Use tax shall mean the tax paid or required to be paid by a consumer for using, storing, distributing or otherwise consuming tangible personal property or taxable services inside the City under this Article. Jr 8- f Wholesale sale shall mean a sale by any person to a licensed retailer,jobber, dealer or wholesaler for resale and does not include a sale by a person to a user or consumer not for resale; this latter type of sales shall be deemed to be a retail-sale and shall be subject to the provisions under this Article. Wholesaler shall mean any person who engages in wholesale sales. Sec. 25-72. - Legislative intent. b) The sales tax is a transaction tax levied upon all sales and purchases of tangible personal property and taxable services sold or purchased by persons in the City and is collected by the retailer and remitted to the City. The use tax is levied upon the privilege of persons in the City to store, use, distribute or consume tangible personal property located in the City and taxable services purchased or sold at retail and furnished within the City, whether purchased or sold inside or outside the City, and not subject to the sales tax imposed by this Article. The use tax is remitted to the City by the persons storing, using, distributing or consuming the tangible personal property or taxable services. The use tax is a complement to the sales tax, and its purposes are to equalize competition between in-City and out-of-City retailers of tangible personal property and taxable services and to eliminate incentives for City residents to leave the City to purchase tangible personal property and taxable services. Sec. 25-73. -Imposition of the sales tax and exemptions. b) Taxable transactions and items. The sales tax shall apply, without limitation, as follows: 4) Upon telecommunication services, including carrier access services, whether furnished by public or private corporations or enterprises, for all intrastate telecommunication services originating from or received on telecommunication equipment in the City if the charge for the service is billed to a person in the City or billed to an affiliate or division of such person in the City on behalf of a person in the City; 5) Upon carrier access services, whether furnished by public or private corporations . or enterprises, for all interstate telecommunication services originating from or received on telecommunication equipment in the City if the charge for the service is billed to a person in the City or billed to an affiliate or division of such person in the City on behalf of a person in the City; 9- 8) Upon the amount paid for all prepared food or food for immediate consumption; 10) Upon television and entertainment services; 11) Upon all sales of preprinted newspaper supplements; and 12) Upon the purchase price paid for food, but only at the tax rate of two and twenty- five hundredths (2.25) percent of the purchase price. c) Transactions and items exempt from the sales tax. The following shall be exempt from the sales tax: 2) All sales of tangible personal property if all of the following conditions exist: i b. The articles purchased are to be delivered to the purchaser outside the City by common carrier or by the conveyance of the retailer or by mail; and , C.The articles purchased and delivered are used outside the City. 5) All sales to the United States or the State, or departments, institutions or political subdivisions thereof, and all sales to the City and any department thereof, provided that such purchases are supported by official government purchase orders or charged to the governmental entity's credit card account and are paid for by draft or warrant drawn on the governmental entity's bank account or such purchases are made pursuant to a written agreement with the governmental entity in which the purchaser is to make such purchases on behalf of the governmental entity; ' 6) All sales to charitable organizations of tangible personal property or taxable services to be used in the conduct of the organization's regular activities to foster its religious or other expressed charitable purpose, provided that the organization obtains from the City an exempt organization license pursuant to § 25-94 and presents the license to the vendor at the time of the sale; 7) All sales which the City is prohibited from taxing under the Constitution or laws of the United States or the Colorado Constitution; J 10- 9) All sales of drugs dispensed in accordance with a prescription, all sales of prescription drugs for animals (except prescription pet food), all sales of prosthetic devices and all sales of medical supplies; 11) All charges for lodging services pursuant to a written lease for a period of thirty 30) consecutive days or more; 13) All sales of tangible personal property through a coin-operated device; provided, however, that the owner of such device shall pay a tax in the amount stated in § 25-75 on the value of the tangible personal property sold in excess of ten cents ($0.10) per item so vended in the coin-operated device-unless the sale shall be otherwise exempt as provided in this Article; 14) All sales of farm machinery for use in farming operations and all sales of farm machinery parts for use in farming operations; provided, however, that this exemption for farm machinery parts shall not apply in the case of repairs performed or parts installed on farm machinery in the City. Trucks having a manufacturer's rated capacity of one (1) ton or less shall not be considered farm machinery for the purposes of this Section. Nothing herein contained shall be construed to limit any other exemption contained in this Article; 15) All sales of feed and feed supplements and drugs for livestock or poultry and all sales and purchases of seeds, plants and fertilizers when such sales are made for farm operations; 16) All sales of construction materials if .such materials are picked up by the purchaser and if the purchaser of such materials presents to the vendor a building permit or other documentation acceptable to the City evidencing that a local sales or use tax has been paid or is required to be paid; 17) All sales of tangible personal property or taxable`services which transaction was previously subjected to a sales or use tax lawfully imposed'on the purchaser or user by another municipality in the State at a rate equal to or greater than the rate stated in § 25- 75 and such tax was collected. If the rate of the sales tax paid to such municipality is less than the rate stated in.§ 25-75, the difference between the tax due under this Article and the tax paid previously shall be remitted to the Financial Officer; 18) All occasional sales by charitable organizations and schools made for fund-raising purposes. For purposes of this Subsection, occasional sales is defined as either of the following: 11- a.Sales which occur for no more than thirty (30) days in one (1) calendar year. A sale is deemed to occur when consideration is received by the organization for the item sold; or b.Sales which gross less than fifty thousand dollars ($50,000.) in one (1) calendar year. 19) All sales of commercial packaging materials, and commercial shipping materials; 20) All sales of newsprint and printers' ink used to print newspapers and all sales and purchases of newspapers; 21) All sales of tangible personal property purchased in order to be sold at retail in the City either in its original form or as an ingredient of a manufactured or compounded product, in the regular course of business; 22) All sales of tangible personal property to a person engaged in the business of manufacturing or compounding for sale, profit or use of any product, which tangible personal property becomes an ingredient or component part of the product which is manufactured or compounded; 23) All sales of fuel for use in a continuing activity of producing tangible personal property or taxable services, including, but not limited to, processing, manufacturing, mining, refining, irrigation, telecommunication services and street and railroad transportation services; and 24) All sales of automotive vehicles and parts and accessories therefor when used or engaged in interstate commerce. d) The sale of food is exempt from taxation under this Article as provided below: 1) No sales or use tax shall apply to the sale of food purchased with food stamps issued under the supplemental nutrition assistance program as defined in 7 U.S.C. § 2012(t), as amended; and 2) No sales or use tax shall apply to the sale of food purchased with funds provided by the special supplemental food program for women, infants and children under 42 U.S.C. § 1786, as amended. For the purposes of this subparagraph (2),food shall have the same meaning as provided in 42 U.S.C. § 1786, as amended. Sec. 25-74. - Imposition of the use tax and exemptions. a) There is hereby levied and there shall be paid a use tax on the full purchase price paid for or acquisition costs of tangible personal property and taxable services brought into the City for the purpose of using, storing, distributing or consuming such property and services within the City. The use tax is levied upon the privilege of using, storing, distributing, or consuming in the 12- City, personally or in connection with the operation of a business, tangible personal property or taxable services and is paid by either the retailer or the consumer. a b) Transactions and items exempt from the use tax. The use, storage, distribution or consumption in the City of the following are hereby exempted from the use tax: 5) Tangible personal property used, stored, distributed or consumed by the United States or the State or departments, institutions or political subdivisions thereof and the City and any department thereof; 8) Fuel for use in a continuing activity of producing tangible personal property or taxable services, including, but not limited to, processing, manufacturing, mining, refining, irrigation, telecommunication services and street and railroad transportation services; 12) Tangible personal property or services which the City is prohibited from taxing under the Constitution-or laws of the United States or the Colorado Constitution; 13) Drugs dispensed in accordance with a prescription, prescription drugs for animals excluding prescription pet food), prosthetic devices, and medical supplies; 14) The storage of construction materials and construction materials picked up by the purchaser if the purchaser of such materials presents to the vendor a building permit or other documentation acceptable to the City evidencing that a local sales or use tax has been paid or is required to be paid; 15) Automotive vehicles properly titled and registered to an address outside the City; 16) Goods manufactured in the City and sold by the manufacturer thereof directly to the ultimate consumer when delivery of such goods is made by common, contract or commercial carrier or by conveyance of the vendor or the purchaser to a point outside the City for use outside the City; 17) Cigarettes; 18) Farm machinery and farm machinery parts for use in farming operations; provided, however, that this exemption for farm machinery parts shall not apply to parts installed on farm machinery in the City. Trucks having a manufacturer's rated capacity of one (1) ton or less shall not be considered farm machinery for the purposes of this Section; 4 3- 19) Feed and feed supplements and drugs for livestock or poultry and seeds, plants and fertilizers when used for farm operations; 20) Commercial packaging materials and commercial shipping materials; 21) Newsprint and printers' ink used to print newspapers and'newspapers; and 22) All other tangible personal property and taxable services that are exempt, as provided in Sections 25-73(c) and 25-73(d), from the sales tax imposed in this Article. Sec. 25-75. - Rate of tax. a) The amount of tax hereby levied is three and eight-five hundredths (3.85) percent of the purchase price of tangible personal property or taxable services except that the amount of use tax levied on manufacturing equipment is three (3) percent of the purchase price. Twenty-five one- hundredths (0.25) percent of such amount is a tax which shall expire at midnight on December 31, 2030, the proceeds of which shall be used for the purposes of acquiring, operating and maintaining open spaces, community separators, natural areas, wildlife habitat, riparian areas, wetlands and valued agricultural lands, and to provide for the appropriate use and enjoyment of these areas by the citizenry, pursuant to the provisions of the Citizen-Initiated Ordinance No. 1,, 2002. Another twenty-five one-hundredths (0.25) percent is a tax which shall expire at midnight on December 31, 2025, the proceeds of which shall be used for the purpose of paying the costs of planning, design, right-of-way acquisition, incidental upgrades and other costs associated with the repair and renovation of City streets, including, but not limited to, curbs, gutters, bridges, sidewalks, parkways, shoulders and medians. Another twenty-five one-hundredths (0.25) percent is a tax which shall expire at midnight on December 31, 2025, the proceeds of which shall be used for the purpose of paying the costs of planning, design, real property acquisition, and construction, the capital projects specified in the "Community Capital Improvement Program" and five (5) years of operation and maintenance for those capital projects specified in Ordinance No. 013, 2015, all of which shall be subject to the terms and conditions of Ordinance No. 013, 2015. Another eighty-five one-hundredths (0.85) percent is a tax which shall expire at midnight on December 31, 2020, the proceeds of which shall be used in accordance with the terms and conditions of Ordinance No. 126, 2010. Section 3. That Article III Division 2 of Chapter 25 of the Code of the City of Fort Collins is hereby amended to read as follows: Division 2 . Licensing Sec. 25-91. - Sales/use tax license required. a) No person shall engage in the business of selling at retail tangible personal property and taxable services subject to the tax imposed by this-Article without first having obtained a license 14- r therefor, which license shall be granted and issued by the Financial Officer and shall be in full force and effect until revoked. b) No person shall use, store, distribute or consume• any tangible personal property or taxable services subject to the tax imposed by this Article without first having obtained a license therefor, which license shall be granted and issued by the Financial Officer and shall be in full force and effect until revoked. d) If an application for a license is submitted by a personflwhich previously held a license, the Financial Officer may require that any taxes, penalties and interest due under the previous license be paid and a bond posted in an amount set by the Financial Officer to ensure payment of taxes under the new license prior to the issuance of such new license. Sec. 25-92.—Separate license required for each place of business. unchanged) Sec. 25-93. —Form of license; not transferable. unchanged) Sec. 25-94.—Exempt organization license; application procedure. unchanged) Sec. 25-95.—Revocation of license. unchanged) Sec. 25-96.—Appeal of revocation. unchanged) Section 4. That Article III Division 3 of Chapter 25 of the Code of the City of Fort Collins is hereby amended to read as follows: Division 3 Taxpayer Responsibilities Sec. 25-116.— Collection of Tax. unchanged) Sec. 25-117.—Tax money in possession of retailer held in trust. 15- unchanged) Sec. 25-118. - Tax on credit or secured sales; bad debts. a) Whenever tangible personal property is sold under a conditional sales contract or lease- purchase agreement whereby the retailer retains title as security for all or part of the purchase price or whenever the retailer takes a purchase money security interest on such tangible personal property to secure all or part of the purchase price, the tax shall be imposed on each individual payment made by the purchaser on the purchase price owed under the terms of the conditional sales contract or lease-purchase agreement. This tax shall be charged and collected by the , retailer. No refund or credit shall be allowed to either party to the transaction in case of repossession. Sec. 25-119. - Tax on construction materials and supplies. b) The owner and/or contractor shall keep and preserve all invoices, receipts and statements showing such purchases of construction materials and supplies and tangible personal property for a period of three (3) years after completion of construction. The City may, within that three-year period, conduct an audit of such records of the owner and/or contractor and any other relevant information to verify the actual cost of the construction materials and tangible personal property used therein to determine the actual tax due. If the actual tax due is more than that paid by the taxpayer, the Financial Officer shall serve a notice of determination, assessment and demand for payment on the taxpayer notifying him or her of the deficiency including penalty and interest. Service of such notice and payment of the assessed amount shall be made in accordance with § 25-186. Sec. 25-120. - Proration of use tax on certain construction equipment. c) In order to avail himself or herself of the provisions ,of (b) above, the taxpayer shall substantially comply with the following procedures: 2) The taxpayer shall file with the City an amended equipment declaration reflecting any changes in the information contained in any previous equipment declaration no less than once every ninety (90) days after the equipment is brought into the City or, for equipment which is brought into the City for a project of less than ninety (90) days' duration, no later than ten (10) days after substantial completion of the project; and 16- d) If the equipment declaration is given as provided in Subsection (c) above, then as to any item of construction equipment for which the purchase price was under two thousand five hundred dollars ($2,500.) that was brought into the City temporarily for use on a construction project, it shall be presumed that the item was purchased in a jurisdiction having a local sales or use tax as high as the rate stated in § 25-75 and that such local sales or'use tax was previously paid. In such case, the burden of proof in any proceeding before the City, the Financial Officer or a court shall be on the City to prove such local sales or use tax was not paid. Sec. 25-121. - Location guide available. unchanged) Sec. 25-122. - Tax on automotive vehicles purchased outside City. unchanged) Sec. 25-123. - Remittance of sales tax collected by retailer. unchanged) Sec. 25-124. - Remittance of use tax. unchanged) Sec. 25-125. - Remittance of use tax by property owners and lessees. unchanged) Sec. 25-126. - Remittance of tax on other than a monthly basis. b) The Financial Officer may require a bond or other financial guarantee to secure payment of the tax on such less frequent basis and may revoke permission to pay the tax on such basis if payment of the tax due becomes delinquent. c) Unless otherwise approved by.the Financial Officer, taxpayers must file returns and pay taxes as follows: 1) A taxpayer whose monthly tax due is less than twenty-five dollars ($25.) may file returns and pay tax, annually, quarterly or monthly; 2) A taxpayer whose monthly tax due is less than three hundred dollars ($300.) may file returns and pay tax, quarterly or monthly; 17- 3) A taxpayer whose monthly tax due is three hundred dollars ($300.) or more shall file and pay tax monthly; 4) The reporting period for a final return shall end on the date of the transfer of ownership of a business; 5) The reporting period for an initial use tax return shall be the calendar month of the date of sale of the business if the business was purchased or opening_ day of business if the business is new; and Sec. 25-127. - Form of tax returns; signatures required. . unchanged) Sec. 25-128. - Consolidation of returns. unchanged) Sec. 25-129. - Deferred use tax payments for large base industry. unchanged) Sec. 25-130. - Deferred sales and use tax payments for affordable housing projects. All sales and use taxes for materials purchased and used in the construction of an affordable housing project as this term is defined in Code § 26-631 shall, upon the request of the applicant, be deferred until the date of issuance of the certificate of occupancy (whether temporary or permanent) for such affordable housing project, or portion thereof, or until the first day of December of the year in which the deferral was obtained, whichever first occurs. At the time of application for any such deferral, the applicant shall pay to the City a fee in the amount of fifty dollars ($50.) to partially defray the cost of administration. No person shall knowingly make any false or misleading statement of fact in order to obtain any deferral of taxes under this Section. Section 5. That Article III Division 4 of Chapter 25 of the Code of the City of Fort Collins is hereby amended to read as follows: Division 4 Refunds Sec. 25-146. - Tax disputes. unchanged) Sec. 25-147. - Procedure for refund of disputed tax. 18- i A refund shall be made or credit allowed for the tax paid under dispute by any person who claims that the transaction or item was not taxable or claims an exemption as provided in this Article. Such refund shall be made by the Financial Officer after compliance with the following: 1) Application. An application for a refund of sales or use tax paid under dispute or paid in error by a purchaser or user who claims,an exemption under Subsection 25-73(c) or Subsection 25-74(b) shall be made within three (3) years after the date of purchase, storage, use or consumption of the goods or services whereon an exemption'is claimed. Such applications must be accompanied by the original paid invoice or sales receipt and must be made upon such forms as shall be prescribed and furnished by the Financial Officer; 2) Burden of proof. The burden of proving that any transaction or item is not taxable or is exempt from the tax shall be upon the person asserting such claim under such reasonable requirements of proof as the Financial Officer may prescribe; 3) Decisions. Upon receipt of an application, the Financial Officer shall promptly examine the same and shall give written notice to the applicant of his or her decision thereon; Sec. 25-148. - Right of refund not assignable. unchanged) Sec. 25-149. - Action for recovery of refund. unchanged) Section 6. That Article III Division 5 of Chapter 25 of the Code of the City of Fort Collins is hereby amended to read as follows: Division 5 Administration Sec. 25-166. - Preservation of returns and other records; confidentiality. e) Notwithstanding the provisions of this Section, the Financial Officer may furnish to the taxing officials of the State or its political subdivisions, any other state or its political subdivisions or the United States any information contained in any application, report, return or any other document if the recipient jurisdiction agrees with the Financial Officer to grant similar privileges to the City and if such information is to be used by the jurisdiction only for tax-related purposes, except as provided in § 25-173(e). 19- Sec. 25-167. - Records and accounts to be kept. It is the duty of every person engaged in business in the City for the transaction of which a license is required by this Article to keep and preserve suitable records of all sales, purchases and leases made by such person, and such other books or accounts as may be necessary to determine the amount of tax for the collection or payment of which such person is liable hereunder. It is the duty of every such person to keep and preserve all such books, invoices and other records for a period of three (3) years after the later,of: (a) the date that the return for the tax owed under this Article is filed; or (b) the last date on which such return was required to be filed under this Article. These records shall be open for examination in the City at any time by the Financial Officer. Sec. 25-168. -Examination of returns; recomputation, credits, deficiencies. As soon as practicable after a return is filed, the Financial Officer shall examine it. If it appears that the correct amount of tax to be remitted may be greater or less than that shown in the return, the tax shall be recomputed by the Financial Officer. If the amount paid exceeds that which is due, the excess shall be refunded or credited against any subsequent remittance from the taxpayer. If the amount paid is less than the amount due and any part of the deficiency is due to negligence or intentional disregard of the provisions of this Article or of authorized rules and regulations of the City with knowledge thereof but without intent to defraud, the amount of the deficiency together with a penalty of ten (10) percent of the amount of the deficiency plus interest on both the deficiency and the penalty at the rate imposed under § 25-188 from the date the return and the tax was due shall be due and payable by the taxpayer within twenty-one (21) days after written notice of determination, assessment and demand for payment is mailed to the taxpayer by the Financial Officer as provided in § 25-186(b). If any part of the deficiency is due to fraud with-the intent to evade the tax, then there shall be added a penalty of one hundred (100) percent of the deficiency and in such case, the amount of the deficiency, the penalty and interest calculated as stated above shall be due and payable by the taxpayer within twenty-one (21) days after written notice of determination, assessment and demand for payment is mailed to the taxpayer by the Financial Officer and an additional amount of three (3) percent per month on such amount shall be added from the date the return and tax was due until paid. The taxpayer may protest the notice of determination, assessment and demand for payment issued under this section as provided in § 25-186. Sec. 25-169. - Investigation of records relating to taxes. For the purpose of ascertaining the correctness of a return, or for the purpose of determining the amount of tax due from any person, whether licensed under this Article or not, the Financial Officer may hold investigations, including audits, and hearings concerning any matters covered by this Article, and may examine any relevant books, papers, records or memoranda of any such person and may require by subpoena the attendance of such person, or any officer or employee of such person, or of any person having knowledge of transactions involved, and may take testimony and proof of the information. The Financial Officer shall have the power to administer oaths to such persons. 20- Sec. 25-170. - Subpoenas and witness fees. unchanged) Sec. 25-111. - Attendance of witnesses and production of evidence to be compelled by District Judge. unchanged) Sec. 25-172. - Depositions. unchanged) . Sec. 25-173. - Coordinated audit. g) The coordinated audit procedure set forth in this Section shall not apply: 3) When a taxpayer refuses to promptly sign a waiver of thirty-six (36) months; or Section 7. That Article III Division 6 of Chapter 25 of the Code of the City of Fort Collins is hereby amended to read as follows: Division 6 Enforcement Sec. 25-186. - Failure to make return; estimate of taxes; notices; appeal; audit. a) If any person fails, neglects or refuses to collect tax or to file a return and pay the tax as required by this Article, the Financial Officer shall make an estimate of the tax due based on available information and shall add thereto interest on such delinquent taxes at the rate imposed by § 25-188 plus one-half(0.5) percent per month from the date the return and tax was due. b) The Financial Officer shall serve upon the delinquent taxpayer personally or by first-class mail or certified mail directed to the last address of the taxpayer on file with the City written notice of such estimated taxes, penalty and interest. Such notice shall constitute a notice of determination, assessment and demand for payment and, which payment shall be due and payable within twenty-one (21) days from the date the notice is mailed. c) The Financial Officer may at any time within three (3) years of the date a tax is due, serve upon any taxpayer personally or by first-class mail or certified mail directed to the last address of the taxpayer on file with the City, a written notice of audit notifying the taxpayer that 21- the Financial Officer will be conducting an audit of the taxpayer's books and records to determine the exact amount of any tax, penalty, interest, collection costs and other charges due. Within thirty (30) days of that notice or within such longer time period as permitted by the Financial Officer, the taxpayer shall make available to Financial Officer all of the-taxpayer's relevant books and records requested by the Financial Officer for the audit. If as a result of the audit the Financial Officer determines the taxpayer owes the City any additional tax, penalties, interest, collection costs or other charges under this Article, the Financial Officer shall serve upon the taxpayer a notice of determination, assessment and demand for payment for such tax deficiency as provided in paragraph (b) above and payment shall be due and payable twenty-one 21) days from the date such notice is mailed. d) A taxpayer may protest of a notice of determination, assessment and demand for payment issued to a taxpayer for failure to file a return, tax deficiency owed or as a result of an audit by submitting the protest in writing to the Financial Officer within twenty-one (21) days from the date the notice of determination, assessment and demand for payment is mailed to the taxpayer. Any such written protest shall identify the amount of tax disputed, the basis for the protest and be given under oath by the taxpayer or the taxpayer's authorized representative. Such protest may include a request for a hearing. It shall also include a physical, post office box or email address to which the taxpayer wishes the Financial Officer's written order issued in paragraph (e) below to be sent when issued. e) In response to the written protest, if a hearing was requested, the Financial Officer shall notify the taxpayer in writing of the time and place of the hearing. After such hearing, or after a consideration of the facts and figures contained in the protest if no hearing is requested, the Financial Officer shall make such written order in the matter as he or she deems just and proper and shall furnish a copy of that order to the taxpayer by first class or certified mail or by email as directed in the protest filed by the taxpayer. Sec. 25-187. - Recurring assessment charge and collection costs. If any taxpayer has failed, neglected or refused to pay the tax imposed by this Article within the time specified fdr payment, the Financial Officer may assess a twenty five dollar ($25.) charge upon the issuance of each notice of determination, assessment and demand for payment in addition to the taxes, penalties and interest provided for elsewhere in this Article. This charge is imposed to compensate the City for its administrative costs to issue the notice. In addition, the City may include in any assessment against the taxpayer the collection costs the City incurs in collecting the taxes, penalties, interest and other charges owed under this Article, including, without limitation, the City's attorney fees. Sec. 25-188. - Rate of interest; method of calculation. When interest is required or permitted to be charged under any provision of this Article, that interest shall be calculated as follows: 1) Interest at a rate of one (1) percent per month shall be calculated for each month or portion of a month from the due date that a tax deficiency remains unpaid; or 22- Sec. 25-189. - Tax constitutes lien. a) The sales and use tax imposed by this Article, together with all penalties, interest, collection costs and other charges pertaining thereto, is a first and prior lien upon the goods, stock-in-trade and business fixtures in which the retailer has an ownership interest except for goods that have been purchased in the ordinary course of business by retail purchasers and such lien takes priority over other liens or claims of whatsoever kind or nature on such property. b) The sales and use tax imposed by this Article, together with all penalties, interest, charges and costs of collection pertaining thereto, is a first and prior lien on the real and personal property of the taxpayer other than,the goods, stock-in-trade and business fixtures in which the taxpayer has an ownership interest, except as to preexisting liens or claims of a bona fide mortgagee, pledgee,judgment creditor or.purchaser whose rights have attached prior to the filing of the notice of lien provided for in paragraph (d) below, on the property of the taxpayer. c) Whenever the business or property)of any taxpayer is placed in receivership, bankruptcy, seized under distraint for nonpayment of property taxes or an assignment is made for the benefit of creditors, all taxes, penalties, interest, collection costs and other charges imposed by this Article and for which the taxpayer is in any way liable under this Article are a prior and preferred claim against all the property of the taxpayer, except as to preexisting claims or liens of a bona fide mortgagee, pledgee, j udgmenf creditor or purchaser whose rights have attached prior to the filing of the notice of lien provided for in (d) below, on the property of the taxpayer, other than the goods, stock-in-trade and business fixtures of such taxpayer. No sheriff, receiver, assignee or other officer shall sell the property of any taxpayer subject to the provisions of this Article under process or order of any court without first ascertaining from the Financial Officer the amount of tax deficiency due and payable under this Article. If there is any such tax deficiency owing or unpaid, it is the duty of such officer to first pay that amount out of the proceeds of such sale before paying any monies to judgment creditors or other claimants, except that the officer may pay costs of the proceedings and other preexisting liens or claims as provided in this Subsection. d) If any tax deficiency due by returns filed by\the taxpayer or by assessments made by the City as provided in this Article is not paid within five (5) days after it is due, the Financial Officer may issue a notice, setting forth the name of the taxpayer, the amount of the tax, penalties, interest, collection costs and other charges, the date of its accrual, and the fact that the City claims a first and prior lien therefor on the real and personal property of the taxpayer, except as to preexisting liens or claims of a bona fide mortgagee, pledgee, judgment creditor or purchaser whose rights have attached prior to the filing of the notice on the property of the taxpayer, other than the goods, stock-in-trade and business fixtures in which the taxpayer has an ownership interest. A similar notice may also be issued by the Financial Officer for the lien-on goods, stock-in-trade and business fixtures authorized in paragraph (a) above. The notice of lien shall be made on forms prescribed by the Financial Officer and verified by the Financial Officer and may be filed in the office of the clerk and recorder of any county in the state in which the 23- taxpayer owns real or personal property or with any person in possession of any personal property or rights to property belonging to the taxpayer. e) The Financial Officer shall release any lien as shown on the records of-the county clerk and recorder as herein provided, upon payment of all taxes, penalties, interest, collection costs and other charges covered thereby, in the same manner as mortgages and judgments are released. f) In addition to any other remedies authorized under this Article and the law, the liens authorized by this Section may be foreclosed and executed upon by the City in the district court of the county in which the encumbered property is located in the same manner as security agreements, mortgages and judgment liens are so foreclosed and'executed upon under state law. Sec. 25-190. - Lien on construction improvements. a) The full amount of unpaid taxes arising from and required to be reported pursuant to the provisions of §§ 25-119 and 25-125, together with interest, penalties, collection costs and other charges as herein provided, are a first and prior lien on the property of the taxpayer and take priority over all other liens of whatsoever kind and nature, except for liens for general taxes created by state law and preexisting liens or claims of a bona fide mortgagee, pledgee,judgment creditor or purchaser whose rights have attached prior to the filing of the notice of lien provided for in § 25-189. This lien may be foreclosed and executed upon in accordance with the provisions of§ 25-189. Sec. 25-191. - Sale of business subject to lien. a) Any person who sells a business or stock of goods or closes a business shall complete and file the returns required under this Article and pay any tax deficiency due within twenty-one (21) days of the date on which such person sold the business or stock of goods or closed the business and indicate that it is a final return, that the business is sold or closed, and the name and address of the purchaser of the business, if any. b) A purchaser of a business who has acquired the furniture, fixtures and/or equipment of the business shall withhold sufficient funds from the purchase money to cover the amount of the tax deficiency, imposed by this Article due and unpaid until the seller provides a receipt from the Financial Officer showing that such tax deficiency has been paid. If a tax deficiency imposed by this Article is due and unpaid after the twenty-one (21) day period herein provided, such purchaser of the business is personally liable for the payment of that tax deficiency to the City to the same extent as the seller of the business or stock of goods. Sec. 25-192. - Certificate of discharge of lien. a) If any real or personal property is subject to a lien for payment of a tax deficiency due to the City under this Article, the Financial Officer may issue a certificate of discharge of any part of the property subject to the lien if the Financial Officer finds that the fair market value of that 24- part of such property remaining subject to the lien is at least twice the amount of the unsatisfied tax deficiency plus the value of any liens on the property that have priority over the City's lien. b) If any real or personal property is subject to a lien for payment of a tax deficiency due to the City under this Article, the Financial Officer may issue a certificate of discharge of any part of the property subject to the lien if the Financial Officer is paid in partial satisfaction of the tax deficiency in an amount determined by the Financial Officer to be not less than the value of the City's interest in the part of the property so discharged. In determining the value of the part of the property to be discharged, the Financial Officer shall consider the fair market value of the property and the value of any liens on the property that have priority over the City's lien. Sec. 25-193. -Jeopardy assessment. a) If the Financial Officer finds that collection of the tax will be jeopardized for any reason, the Financial Officer may declare the taxable period immediately terminated, determine the tax deficiency and issue a notice of determination, assessment and demand for payment. Notwithstanding the provisions of§ 25-186, the tax shall then be due and payable forthwith, and the Financial Officer may proceed to collect the tax deficiency as provided in § 25-194, or pursue such other remedies as authorized under this Article or by law. Sec. 25-194. - Enforcing the collection of taxes due. a) The Financial Officer may issue a warrant directed to any employee, agent or representative of the City or any sheriff of any county of the State, commanding such person to distrain, seize and sell any personal property in which the taxpayer has an ownership interest, except such property as is exempt from the execution and sale by any statute of the State, for the payment of tax due together with interest, penalties, collection costs and other charges thereon in the following circumstances: 1) When any assessed tax deficiency is not paid within twenty-one (21) days from the date of mailing of the notice of determination, assessment and demand for payment and no hearing or extension has been requested in a timely manner; 2) When any assessed tax deficiency is not paid within twenty-one(21) days from the date of the notice of determination, assessment and demand for payment and no appeal from such notice has been docketed within twenty-eight (28) days after such notice in a court having jurisdiction, except that if the Financial Officer finds that collection of the tax deficiency will be jeopardized during such period, the Financial Officer may immediately issue a distraint warrant; 3) When any assessed, tax deficiency is not paid within the time prescribed in judgment and order of court on any appeal to a court having jurisdiction; 25- 5) After or concurrently with the filing of a notice of lien as provided in § 25-189(d). b) The Financial Officer may apply to the Judge of the City's Municipal Court for a warrant authorizing the Financial Officer to search for and seize property located within the City limits for the purpose of enforcing the collection of any tax deficiency owed under this Article. The Municipal Judge shall issue such warrant after the Financial Officer demonstrates that: f) In all cases of sale, the agent or sheriff making the sale shall issue a certificate of sale to each purchaser, and such certificate is prima facie evidence of the right of the agent or sheriff to make such sale and conclusive evidence of the regularity of the proceedings in making the sale; it transfers to the purchaser all right, title and interest of the delinquent taxpayer in and to the property sold. Where such property consists of certificates of securities or other evidence of indebtedness in the possession of the agent or sheriff, the taxpayer shall endorse such certificates to the purchaser thereof and supply the purchaser with proof of the taxpayer's authority to transfer the same or with any other requisite that may be necessary to obtain registration of the transfer of the certificate. Any surplus remaining above first the City's taxes, penalties, interest, collection costs, and expenses of making the seizure and of advertising the sale and then the amounts distributed pro rata to other jurisdictions under recorded sales and use or personal property ad valorem tax liens shall be returned to the property owner or such person having a legal right to the property; and, on demand, the Financial Officer shall render an accounting in writing of the sale. g) In the case where a taxpayer has refused or neglected to pay any tax deficiency due to the City under this Article and a lien has been filed as provided in § 25489(d), the Financial Officer may, in addition to pursuing other collection remedies, certify the amount of the tax deficiency, together with ten (10) percent of the delinquent amount for costs of county collection, to the County Treasurer to be levied against the person's property for collection by the County in the same manner as delinquent general taxes upon such property are collected. Before certifying such amounts to the County for collection, the Financial Officer shall provide to the property owner an opportunity for a hearing to contest the authority of the City to impose and collect the tax deficiency, or the amount thereof. The Financial Officer shall mail the notice to the property owner by first class mail addressed to the last known owner of the property on the records of the County Assessor. If the Financial Officer's decision after a hearing affirms the imposition of charges, the decision shall include notice that the charges are due and payable within fourteen 14) days of the date of the decision and that, if not paid when due, they will be certified to the County Treasurer for collection, along with ten (10) percent of the charges for the cost of county collection. Whenever the Financial Officer certifies any such amounts to the County Treasurer for collection, the Financial Officer shall record notice of such certification with the county Clerk and Recorder. Sec. 25-195. - Recovery of unpaid tax by action at law. 26 a) In addition to other remedies provided in this Article, the Financial Officer may treat any such taxes, penalties, interest, collection costs and other charges due and unpaid under this Article as a debt due to the City from the taxpayer. If a taxpayer fails to pay the tax, or any portion thereof, or any penalty, interest, collection costs or other charges thereon, when due, the Financial Officer may recover at law the amount of such taxes, penalties, interest, collection costs and other charges in any court having jurisdiction. The return filed by the taxpayer or the notice of determination, assessment and demand for payment issued by the Financial Officenis prima.facie proof of the amount due. c) Such actions may be actions,in attachment and writs of attachment may be issued to the sheriff. In any such proceedings, no bonds shall be required of the City nor shall any sheriff require of the Financial Officer any indemnifying bond for executing the writ of attachment or writ of execution upon any judgment entered in such proceedings. The City may also prosecute appeals or writs of error in such cases without the necessity of providing bond therefor. d) In any case in which a taxpayer has refused or neglected to pay any tax, penalty, interest, collection costs and other charges due to the City under this Article and a lien has been filed upon any real or personal property as provided in this Article or by other law, City Attorney, at the request of the Financial Officer may cause a civil action to be filed on behalf of the City in any court having jurisdiction over such property to enforce the lien and to subject such real or personal property, or any right, title or interest thereto, to the payment of the amount due. The court shall decree a sale of such real property and distribute the proceeds of such sale, according to the court's findings concerning the interest of the parties and of the City. The proceedings in such action, the manner of sale, the period for and manner of redemption from such sale, and the execution of deed of conveyance shall be in accordance with the law of foreclosures of mortgages upon real property. In any such action, the court may appoint a receiver of the property involved in such action if equity so requires. Sec. 25-196. - City may be party in title actions. unchanged) Sec. 25-197. - Injunctive relief. unchanged) Sec. 25-198. - Compromise and settlement by Financial Officer. a) The Financial Officer may for good cause compromise and settle any actually assessed or potential claim to taxes, penalties, interest, collection costs and other charges due to the City under this Article. Such good cause may include, without limitation, legal and factual considerations', considerations of fairness and justice, and the financial inability of the taxpayer to pay a greater amount. n 27- b) The Financial Officer shall prepare and retain in the files of Financial Services for each settlement a written opinion explaining the good cause for the settlement. The opinion shall also include a statement of: (i) the amount of the tax, penalties, interest, collection costs and other charges that were assessed or that could potentially be assessed; and (ii) the amount paid by the taxpayer in accordance with the terms of the settlement agreement. In a circumstance where the amount of the tax, penalties, interest, collection costs and other charges that could potentially be assessed cannot be reasonably determined, the Financial Officer shall state in the written opinion the reason why these amounts cannot be reasonably determined. d) Notwithstanding the foregoing, the Financial Officer may not compromise and settle a claim that waives more than one hundred thousand dollars ($100,000.) of assessed tax, penalties, interest, collection costs and other charges or that waives an amount of tax, penalties, interest, collection costs and other charges that could potentially be assessed but the amount of that assessment cannot be reasonably determined, unless the City Manager approves the Financial Officer's written opinion. Sec. 25-199. - Obligations of fiduciaries and others. a) For purposes of this Section, an entity shall mean any estate, trust, receivership, corporation, partnership, joint venture, association, limited liability company or any other legal entity. b) For the purpose of facilitating the settlement and distribution of the assets of an entity in the process of or having completed the process of closing, dissolving or otherwise terminating of the entity, the Financial Officer may determine and agree with any fiduciary, shareholder, director, officer, member or other principal of the entity as to an amount of taxes due from the entity for any of the periods of tax liability under this Article. Payment in accordance with such agreement fully satisfies the tax liability for the periods that the agreement covers, unless the entity taxpayer or any of its fiduciaries or other said surviving principals have committed fraud or malfeasance or misrepresented a material fact regarding the tax or liability therefor. c) Except as provided in (e) below, any fiduciary, shareholder, director, officer, member or other principal of an entity in the process of or having completed the process of closing, dissolving or otherwise terminating the entity who distributes the money, property or other assets of the entity under such person's control without having first paid any taxes covered by this Article due from such entity and that may be assessed within the periods authorized by this Article, is personally liable to the extent of the money, property or other assets distributed by such person for any unpaid taxes of the entity imposed by or due under this Article and assessed within the periods authorized by this Article. d) The distributee of any money, property or other assets from any closed, dissolved or otherwise terminated entity is liable under this Article to the same extent that the entity is liable 28- v under this Article, but in an amount not to exceed the value of the money, property or other assets so received by the distributee. e) If a tax under this Article is due from an entity in the process of or has completed the process of closing, dissolving or otherwise terminating the entity the personal liability of the entity's distributees, fiduciaries, shareholders, directors, officers, members and other principals as provided in this Section remains in effect only if a determination of the tax due is made and notice and demand issued within eighteen (18) months after the entity files with the Financial Officer a written request for such determination and the entity has filed the entity's return or returns as required in this Article, but only if the request states that the closing, dissolution or other termination of the entity was begun in good faith before the expiration of the eighteen- month period and the closing, dissolution or other termination is completed. A request for determination under this Subsection does not extend the otherwise applicable period of limitation. Sec. 25-200. - Intercity claims for recovery. unchanged) r Section 8. That Article III Division 7 of Chapter 25 of the Code of the City of Fort Collins is hereby amended to read as follows: Division 7 Miscellaneous Sec. 25-216. - Review of decisions of Financial Officer. The taxpayer may apply for a review of the decision of the Financial Officer in a hearing held pursuant to § 25-169. Such review shall be in the district court or the City's Municipal Court and the proceedings shall be conducted in accordance with Rule 106(a)(4) of the Colorado Rules of Civil Procedure. The review must be sought no later than twenty-eight (28) days after the date of the final decision of the Financial Officer. Sec. 25-217. - Review bond required. For transactions consummated on or after January 1, 1986, within fifteen (15) days after making application under §25-216 for the review of a decision of the Financial Officer under this Article, the party making such application shall file with the court a surety bond in twice the amount of the taxes, penalties, interest, collection costs and other charges stated in the final decision by the Financial Officer which are contested on appeal. The taxpayer may, at his or her option, satisfy the surety bond requirement by a savings account or deposit in or a certificate of deposit issued by a state or national bank or by a state or federal savings and loan association, in accordance with the provisions of Section 11-35-101(1), C.R.S., equal to twice the amount of taxes, penalties, interest, collection costs and other charges stated in the final decision by the Financial Officer. The taxpayer may, at his or her option, deposit the disputed amount with the-Financial Officer in lieu of posting a surety bond. If such amount is so deposited, no further interest shall accrue on the contested amount during the pendency of the action. At the conclusion of the 29- action, after appeal or after the time for such appeal has expired, the funds deposited shall be, at the direction of the court, either retained by the Financial Officer and applied against the amount due or returned in whole or in part to the taxpayer with interest at the rate imposed by § 25-188 from the date it was paid to the Financial Officer. No claim for refund of amounts deposited with the Financial Officer need be made by the taxpayer in order for such amounts to be repaid in accordance with the direction of the court. Sec. 25-218. - Notices. . Except as otherwise expressly provided in this Article, all written notices required to be mailed, served or given to any taxpayer under the provisions of this Article shall be hand delivered or mailed by first class mail or certified mail, postage prepaid, addressed to such taxpayer at the last known address of the taxpayer on file with the City and shall be deemed to have been received by the taxpayer when so mailed or delivered. Sec. 25-219. - License and tax in addition to all other licenses and taxes. unchanged) Sec. 25-220. - Hearings to be held in City. unchanged) Sec. 25-221. - Administration by Financial Officer; rules and regulations. unchanged) Sec. 25-222. - Violations. f) Except as may be otherwise provided for by rule or regulation of the Executive Director of the Colorado Department of Revenue, it is unlawful for any person who is a resident of the City to register any motor vehicle owned by such person or to obtain a license or to procure a certificate of title at any address other than: 2) For any motor vehicle for which the provisions of subparagraph (1) above do not apply, the address of the owner's residence; except that, if a motor vehicle is permanently operated and maintained at an address other than the address of the owner's residence, such motor vehicle shall be registered at the address from which such motor vehicle is permanently operated and maintained. For purposes of this paragraph (f), a person's residence shall be his or her principal or primary home or place of abode, to be determined in the same manner as residency for 30- 1 voter registration purposes as provided in Section-31-10-201, C.R.S., except that 'voter registration" shall be substituted for "motor vehicle registration" as a circumstance to be taken into account in determining such principal or primary home or place of abode. h) It shall be unlawful for any person other than the City to become enriched or to gain any benefit from the collection or payment of the taxes levied by this Article, unless otherwise authorized by law. i) It shall be unlawful for any officer, agent or employee of the City to divulge or make known in any way any information classified herein as confidential, except in accordance with a court order or as otherwise provided by this Article or other applicable law. 1) It shall be unlawful for any person to violate any other mandatory provisions of this Article. Sec. 25-223. - Penalties. a) The penalty for violating any mandatory provision of this Article shall be a fine or imprisonment or both in the amounts stated in § 1 15. b) In addition to the penalties stated in (a) above, and in addition to the penalties and interest which may be payable under the provisions of § 25-186(a), any person who registers a motor vehicle in violation of § 25-222(f) shall be subject to a civil penalty of five hundred dollars 500.). Such violation shall be determined by the Financial Officer and shall be assessed by and paid to the Financial Officer and such civil penalty may be collected by the Financial Officer in the same manner as other penalties are collected under this Article. Sec. 25-224. - Purpose of tax; distribution of proceeds. unchanged) Sec. 25-225. -Limitations on actions to collect. a) Except as otherwise provided in this,Section or as waived by the taxpayer, none of the following actions shall be taken by the City to collect any amount of tax due and owing under this Article together with any applicable penalties, interest, collection costs and other charges imposed by this Article, more than three (3) years after the later date of(i) the date on which the tax return for that tax was filed, regardless of whether such return was filed on or after the date required by this Article, or (ii) the last date the return for that tax was required to be filed under this Article: i) issuance of notice of audit; 31- ii) issuance of notice of determination, assessment and demand for payment; iii) notice of lien filed; iv) issuance of jeopardy assessment; v) issuance of distraint warrant; vi) bond collected upon; vii) collection lawsuit commenced; or viii) any other formal legal action taken. If the Financial Officer takes any of the foregoing actions to determine, collect or enforce any tax deficiency under this Article before the expiration of said three (3) year period, any such action shall stop the running of the period of limitation established in this section with regard to any other determination, collection or enforcement action authorized under this Article thereafter taken by the Financial Officer to recover that tax deficiency. However, no lien shall continue after this limitation period, except for taxes assessed before the expiration of that period regarding which a notice of lien regarding such taxes was filed prior to the expiration of that period. In such event the lien shall continue in effect for three (3) years after it is filed as provided in § 25-189. b) For transactions consummated on or after January 1, 1986, the use tax shall not be imposed with respect to the use, storage or consumption of tangible personal property or taxable services in the City which occurs more than three (3) years after the most recent sale of the property or services if, within the three (3) years following such sale, the property or services has been significantly used in the State for the principal purpose,for which it was purchased. d) Nothing in this Section shall be construed to limit any right accrued or to revive any liability barred by any applicable law in effect on the effective date of any ordinance from which this Article was derived. e) Notwithstanding the foregoing provisions of this section, the taxpayer and the Financial Officer may agree in writing to an extension of any period of limitation imposed in this section, and the period agreed on may be extended by subsequent agreement in writing. Sec. 25-226. - Notice of sales and use tax ordinance amendment. unchanged) . Sec. 25-227. - Participation in meetings. The Financial Officer shall cooperate with and participate on an as-needed basis with a permanent statewide sales and use tax committee convened by the Colorado Municipal League which is composed of state and municipal sales and use tax and business officials. Said committee will meet for the purpose of discussing and seeking resolution to sales and use tax problems which may arise. 32- Introduced, considered favorably on first reading, and ordered published this 18th day of April, A.D. 2017, and to be presented for final passage on the 16th day of May, A.D. 2017. OF FORTcNO, V EAL :N ayor ATTEST: cU40RAID City Clerk Passed and adopted on final reading on this 16th day of May, A.D. 2017. OF F011- ` ter y SEMI. Mayor ATTEST: toiiA° City Clerk i 33-